Ethereum (ETH) is attempting to stabilize after a sharp decline that pushed it below several key support levels, with technical indicators pointing to a crucial juncture for the asset.

Recent Price Action: Breakdown Below Key Levels
ETH began a fresh decline after failing to sustain above $2,950, breaking below $2,880 and $2,800. The price formed a low near $2,718 before attempting a minor recovery toward $2,760.

Immediate Resistance: Trendline and Moving Average
On the hourly chart, ETH faces immediate resistance near $2,820, coinciding with a short-term bearish trendline. Above this, the $2,850 zone and the 100-hourly Simple Moving Average present additional hurdles.

The $2,880 level is a key resistance, representing the 50% Fibonacci retracement of the recent drop from $3,052 to $2,718.

A clear break above $2,920 could open a path toward $3,000 and higher toward $3,050–$3,150.

Support Levels to Watch
If the recovery falters, initial support lies at $2,760, followed by major levels at:

$2,740

$2,720

$2,650
A break below $2,720 could signal further downside toward $2,550–$2,500.

Technical Indicators Signal Caution

Hourly MACD: Losing momentum but remains in bearish territory.

Hourly RSI: Below 50, indicating bearish momentum.
These indicators suggest buyers need significant momentum to overcome the current selling pressure.

Broader Market Context
Ethereum’s decline aligns with broader market weakness driven by:

Macro pressures from a potential Bank of Japan rate hike triggering a carry trade unwind.

Bitcoin’s struggle to hold $85,000, which has weighed on altcoins.

Persistent concerns over crypto-specific risks, including potential large-scale selling from major holders.

The Bottom Line
Ethereum is at a technical inflection point. A sustained move above $2,880 could signal a recovery toward $3,000. Failure to reclaim this level, however, risks another leg down toward $2,650–$2,550. Traders should monitor Bitcoin’s stability and broader macro developments for directional cues, as ETH remains highly correlated to overall crypto market sentiment.